Bangchak Petroleum shares concerns with producing B7

Thailand’s oil firms and automakers are ready for the 2014 switch to B7, from the current B5.
Yodphot Wongrukmit, senior executive vice president for marketing at Bangchak Petroleum, said that the company’s refinery, oil depot and service stations were ready to switch to provide B7, beginning January 1, 2014.
However, Yodphot said he was concerned that there might not be an adequate supply of palm oil to be mixed with diesel fuel to produce the B7 blend.
In the past, shortages of palm oil have driven up the market price, thus pushing up the cost of biodiesel production. Yodphot felt the government should ensure that the parties involved can provide a sufficient supply of palm oil, the feedstock being used to produce biodiesel, for both consumers and the energy sector.
“Personally I think the energy ministry should introduce the biodiesel standard step-by-step. For example, next year it should first upgrade to B6. If there is no problem with palm oil shortages after six months, it can then upgrade to B7,” he said.
He believes this method should also be applied to the B10 upgrade, which would give automakers and palm oil producers time to make adjustments.
Surapong Paisitpatanapong, spokesman for the Federation of Thailand Industries’ auto-industry club, said that currently diesel-fueled vehicles could accommodate the B7 diesel, but if there were an upgrade to B10 in 2019, the government would first need to negotiate with the parties involved as automakers would have to invest in upgrading their engine designs.
To date, no country has yet adopted B10.
(August 13, 2013)